Main types of fees

There are many different types of fees associated with your
super fund. Fees are typically deducted from your account at the
end of each month or when an action is taken. Super fees can be
either a dollar amount or a percentage.

The main types of fees are:

Smart tip

A 1% difference in fees now could be up to a 20%
difference in 30 years.

Member fees - General administration fees to cover
the cost of keeping your super account.

Management or investment management fees (also known as
MER) - Fees for managing your investment which can vary
for different investment options.

Adviser service fees - Fees for personal
advice provided about your super and other investments. Your
adviser may also receive commissions for certain investments that
they recommend to you.

Insurance premiums - The cost of insurance
provided through your super fund. Many super funds have a set
default insurance option. You can usually choose to lower or
increase your level of cover based on your needs.

If the fee you're looking for isn't mentioned here, see secondary fees.

Super funds offer other services which may attract special fees.
Refer to your super fund's website or read the fund's product disclosure statement for
details.

Case study: Gerri chooses lower super fees

Gerri
is 30 and earns $50,000 per year as a librarian. She already has
$20,000 in her super. After shopping around for another super fund,
she changed to one with only 1% management costs. Her old super
fund charged 2.5% (including adviser fees).

By changing to a super fund with lower fees, Gerri will have
$81,000 more in her super when she retires at age 65. Her super
account balance will be $336,000 instead of $255,000.

Assumptions: Calculated using the superannuation calculator,
assuming 8% returns, no other fees, no insurance premiums and no
changes to salary.

How to tell if you're paying high
fees

The only way to know if you're paying high fees is to find out
what your super fund is charging you, and comparing the cost to
other similar funds.

Compare fees

To compare the fees on your super fund with those of other
funds, use our superannuation calculator.